Tag: Crude Oil (NYMEX:CL.X18.E)

Hello traders everywhere. Once again the DOW has reached a record high, this time at the opening of trading then heading higher from there. The move higher marks the fifth straight day that the DOW has traded higher. The reason for the continued optimism? better-than-expected jobs creation last month.

Private payrolls increased by 230,000 in September, the most since February, according to a report from ADP and Moody's Analytics. Economists had expected a gain of 185,000. The report is often seen as a preview of the government's nonfarm payrolls report, which is set for release Friday morning.

Decreasing fears of a global trade war have helped boost the stock market as we start the fourth quarter of 2018. This week Canada joined a trade deal between the U.S. and Mexico (USMCA). The agreement grants U.S. dairy farmers access to the Canadian market, while Canada agreed to effectively cap automobile exports to the States.

Next up, China. Can President Trump get a deal worked out with the Chinese government?

Key Levels To Watch This Week:

Continue reading "DOW Rallies To Another Record High" →

Hello traders everywhere. Barring a surprise it's widely expected that the Federal Reserve will announce that they are going to raise rates by 25 basis points today, making this the eighth time it has tightened policy and raised rates since 2015. Fed officials will also present some revised projections for future rate moves along with their outlook for inflation, employment, and growth.

This week's two-day policy meeting could mark the formal end of the "accommodative" level of rates the Fed has used to support the American economy since the onset of the 2007-2009 recession.

Crude oil has backed off its recent highs, the highest levels in almost for years, as Washington tried to assure consumers that the market would be well supplied before sanctions are re-imposed on producer Iran. The U.S. will apply sanctions to halt oil exports from Iran, the third-largest producer in the Organization of the Petroleum Exporting Countries (OPEC), starting on Nov. 4. The pending loss of Iranian supply has been a major factor in the recent surge in crude prices. Many analysts believe that the loss of Iranian oil will push the price of oil to $100.

Key Levels To Watch This Week:

Continue reading "Stocks Steady Ahead of Fed Announcement" →

Hello traders everywhere. The big news of the day is that crude oil is trading 2% higher on the day and at a new four-year high breaking through the $72 a barrel level. The jump in price is because Saudi Arabia and Russia ruled out any immediate increase in production despite calls by President Trump for action to raise global supply in a tweet on Thursday where Trump said the "OPEC monopoly must get prices down now."

Many analysts believe that the crude oil producers such as OPEC can't compensate for the for U.S. sanctions on Iran's exports. Even if they increase output by 500,000 bpd, the overall oil market will still fall short by about 1.5 million bpd that Iran was producing.

After setting new record highs the stock market ending last week on a weak note and that has continued into Monday. The reason? The trade war between the U.S. and China escalated with further tariffs and the cancellation of trade talks between the two countries.

The Wall Street Journal first reported late Friday that China had canceled talks with the U.S. on trade as both countries impose tariffs on billions of dollars worth of their goods. The two sides were set to meet to dial back tensions, but the Journal reported that China rescinded a proposal to send two delegations to Washington.

On Monday, a 10% U.S. levy on $200 billion worth of Chinese goods came into effect. The 10% rate is also set to rise to 25% by year-end. China has retaliated, targeting duties on more than 5,000 American goods worth a total of $60 billion.

Here are some key events coming up this week:

Continue reading "Is $100 Crude Oil In Our Future?" →

Hello traders everywhere. The S&P 500 and DOW both traded at record highs for the second straight day this week being propelled by the energy sector as crude oil prices continue to trade above $70 a barrel. Of the two indexes, it's bigger news that the DOW finally hit a new high, it's first since January of this year when it's compatriates have been consistently making new highs this year.

The Dow has risen in eight of the past nine trading sessions, with the most recent gains putting the index up 2.2% for the week, its best weekly stretch since July 13.

The S&P 500 is posting a +1% gain on the week the NASDAQ will barely post a weekly gain checking in with +.10%. For the second straight week, gold is relatively unchanged for the week while crude oil had a great week posting a +3.4% gain.

The U.S. dollar continues to be in a sidelines mode with a red weekly Trade Triangle on the board and looking to post its second weekly loss in a row standing at -.70%. Bitcoin finally gave us the red weekly Trade Triangle that we've been waiting for only to bounce higher and finish the week with a +2.9%. However, expect more volatility in the near-term.

Key Levels To Watch Next Week:

Continue reading "Record Week For Stock Market" →